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How much should he pay for this interest

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Question - The existing rent of a property is $250,000 pa and the lease has 10 years to run without rent review. Market analysis of recent lettings shows that the full market rent is $400,000 and the leasehold yield is 8%.

a. If money can be safely invested at 3%, value the leasehold interest.

b. If the investor pays tax at 36%, how much should he pay for this interest?

Reference no: EM133067046

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